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New Law Encourages Saving
  
In late 2006, The Pension Protection Act was signed into law, making saving money a whole lot easier for many Americans. Well over 900 pages in length, the law not only protects pensions, it makes permanent many features introduced in the Economic Growth and Tax Relief Act of 2001 (EGTRRA), which were set to expire in January, 2011. This includes enhancements to 403(b), 457(b), and 401(k) plans, IRAs, and 529 college savings plans. With pension plans becoming more and more rare, and the uncertainty surrounding the viability of Social Security, consumers need to take advantage of what many financial experts call “generous” benefits designed to hold Americans accountable for their own retirement planning.

For instance, maximum 2007 contributions to 401(k) plans and IRAs not only increase to $15,500 and $4,000 respectively, these limits will be linked to an inflation index and could increase significantly in the future. For taxpayers fifty years and older, the contributions limits to their 401(k)s and IRAs increased to $20,500 and $5,000, respectively (That’s me!!) There’s still plenty of time to make the most of the new tax laws for 2007. Schedule an appointment with a CPA or a Certified Financial Planner, and start preparing for your retirement today.